Your Worst Nightmare
Thursday, 12th Jul 2001 00:00

The Worst Has Happened: Lewis In Charge

The statement reads

Ninth Floor plc today announced that it has disposed of it's 99.15% shareholding in Swansea City Football Club plc, the holding company of Swansea City Football Club, to current Swansea City Managing Director Mike Lewis for £1 and the agreement to repay Ninth Floor loans of £801,098.

The Ninth Floor originally acquired its shareholding in the club in August 1997 for the payment of £100 for shares, and £500,000 for certain loans. These amounts have been fully written off in Ninth Floor's accounts in previous years.

In addition, Ninth Floor has injected a further £200,000 into the club by acquiring the freehold on the Club Shop and car park. Both the car park and the Club Shop will be leased back to the Club for a maximum of 5 years. The club may, at its discretion, re-acquire the properties within the next 5 years at the market value, or £200,000, whichever is the greater.

In the event that Mike Lewis sells his shareholding within the next two years, the Ninth Floor plc will be entitled to 20% of any profit from the sale.

Ninth Floor plc joint Chairman and joint Chief Executive Neil McClure said: " This is an interim step for the club. We no longer wished to see any more uncertainty over the future of Swansea City and as Mike Lewis' offer has been the only firm offer from the number of people we have been in discussion with about the sale of the Club, we felt it was only appropriate to assist him with the Club's purchase.

" We have put in place enough money, and a structure, that will allow Mike Lewis the flexibility to raise new money for the Club, within the next three months, and ensure Swansea City has a secure footing at the same time. We will be keeping our loans in place until the Club can afford to effectively buy-out and pay back the Ninth Floor plc at £801,098, and by injecting £200,000 of new money we have also ensured the club has the funds to keep going.

" During our time in ownership of Swansea City, we have doubled the Club's turnover, improved facilities at the ground and restored the Club to the commercial forefront of the community, from a time when nobody wanted to do business with it. In addition, the club has won its first championship in 50 years.

" We are now very excited about new business opportunities at Ninth Floor and, by selling the Club, the Ninth Floor now has a clear strategy for moving forwards and further developing our investment portfolio in technology led solutions and infrastructure management companies, including newly acquired Applied Infrastructure Management Services Ltd and Farsight Technologies."

This morning's breaking news is the one that all Swansea fans have been dreading. Mike Lewis is not fit to run our football club and my gut feeling is that we can expect some stripping of the best assets over the coming weeks to finance the debts that he has. These are indeed worrying times ahead.

And also the fact that 9th Floor bought the freehold on the club shop and car park is another kick in the teeth for the club.